Abu Dhabi’s sovereign wealth fund ADQ has announced a new company to invest $1.2 billion in the metals and mining sector over four years as the emirate steps up its efforts to secure supplies of its most important minerals, reported by Bloomberg.
ADQ and New York-based Orion Resource Partners have formed a 50-50 partnership that will invest in mining companies through equity, debt and production-related instruments such as royalties, according to a statement on Thursday.
International Holding Co.
Based in the emirate’s financial hub ADGM, the joint venture will initially focus on investments in Africa, Asia and Latin America. It is the latest push by Abu Dhabi to secure access to strategic raw materials. A unit of International Holding Co. — a huge conglomerate controlled by the United Arab Emirates’ national security adviser, Sheikh Tahnoun bin Zayed Al Nahyan — has invested $1.1 billion in a copper mine in Zambia by 2023. It has also been considering investing in a tin mine in the Democratic Republic of Congo. ADQ, which is also part of Sheikh Tahnoun’s $1.5 trillion business empire, recently created an infrastructure and critical minerals cluster.
Orion Abu Dhabi
The joint venture — Orion Abu Dhabi — will be part of the cluster, along with the wealth fund’s investments in firms such as Alpha Dhabi Construction Holding and Plenary Group, the statement said. “The creation of Orion Abu Dhabi is a natural step for us, allowing our companies to realize their ambitious development plans with the assurance of a stable supply of essential resources,” Hamad Al Hammadi, deputy group chief executive officer of the $249 billion investment fund, said in a statement.
Philip Clegg, who served as managing partner of Orion Resource Partners, will head the Abu Dhabi office. Neighboring Saudi Arabia is also seeking mining deals to secure vital minerals for its industrialization plan.